CAC 40 Rally on Softer Inflation Outlook

2026-07-02 16:02 By Isabela Couto 1 min. read

The CAC 40 rose 1.7% to close at 8,476 on Thursday, rebounding from the previous session as easing inflation concerns and prospects of a more dovish Federal Reserve boosted sentiment.

At the ECB Forum, Fed Chair Kevin Warsh said inflation risks had moderated in recent weeks, while ECB President Lagarde noted that risks to euro-area inflation and growth had become less pronounced.

A weaker-than-expected US labor market reading also reduced expectations of further Fed rate hikes this year, supporting broader risk appetite.

Also, oil prices extended losses and remained near pre-conflict levels, easing energy-driven inflation concerns.

Domestically, the state budget deficit narrowed in the January–May period.

Luxury stocks led gains as risk aversion eased, with LVMH up 3.5%, Hermès advancing 3.3%, and L'Oréal gaining 2%.

Industrials also posted strong gains, with Airbus up 2.9% and Thales adding 4.8%.

Other notable performers included Sanofi (+3%), Air Liquide (+2.1%), and Engie (+2.3%).



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